The Ten Most Expensive Homes Sold in Dubai!
Many very rich people are moving to Dubai, making the luxury property market boom.
Sam Horani, a real estate broker in Dubai, has not had trouble selling expensive properties to international buyers. He is an associate partner at Provident Estate and says he has helped sell Dh2.8 billion worth of luxury homes, including a Dh500 million penthouse. His clients come from the US, Austria, Japan, France, and Poland.
“When people come here from the US, they are really shocked. It feels like the American dream from the past,” says Mr. Horani. “Dubai is now more attractive. This is the place to be.”
These very rich investors “want to get the best deal,” he says. “They have the money and don’t really care about the cost. They only think about the process and how long it will take.”
There is a booming market for homes priced over Dh100 million ($27 million) in the UAE, driven by the growing number of ultra-rich people as the economy of the Arab world’s second-largest country continues to grow.
In the past two years, Dubai and Abu Dhabi together have recorded over 100 sales of homes worth more than Dh100 million. These buyers, who are very rich, have been buying homes in top locations like The Palm Jumeirah, Jumeirah Bay Island, Emirates Hills, Business Bay, and Saadiyat Island, according to data from property brokers and the Abu Dhabi Real Estate Centre.
The most expensive home sold in Dubai was a Dh600 million mansion in Palm Jumeirah in 2022. Meanwhile, Abu Dhabi saw its most expensive apartment sale in March: a Dh137 million three-bedroom penthouse at Nobu Residences in Saadiyat Island.
“Demand is coming from global ultra-rich individuals who want to move here or buy a second home,” says Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core. “The people buying Dh100 million-plus homes include Indians, British citizens, and Russians.”
Most of the high-end home sales took place in 2023, setting a record year with more than 50 deals, according to data from Cushman and Wakefield Core and Cavendish Maxwell. From just two deals in 2008, the number of Dh100 million home sales in Dubai grew to 22 in 2022, 51 in 2023, and 34 so far this year.
Abu Dhabi has seen three sales in the Dh100 million-plus category this year, all on Saadiyat Island. This includes the Dh137 million Nobu Residences apartment and the most expensive villa in Abu Dhabi, which sold for Dh130 million last month.
The new property sales come as the UAE continues to attract the world’s ultra-wealthy. A survey by Henley and Partners, a global investment migration advisory firm, found that a record 6,700 millionaires are expected to move to the Emirates by the end of this year. This is nearly double the number expected to move to the US, which is forecast to attract 3,800 millionaires by the end of 2024.
Global high-net-worth individuals are expected to spend $4.4 billion buying property in Dubai this year, up 76% from last year, according to a report by Knight Frank.
People from the Gulf region are expected to spend an average of $3.1 million on homes in Dubai, while global ultra-rich buyers will spend $36.5 million on average. In Abu Dhabi, wealthy people are expected to spend a total of $408 million on property this year, with an average budget of $3.4 million for global buyers and $900,000 for Gulf residents, Knight Frank said.
Dubai’s luxury home market hit record levels in 2023, with sales of homes priced over $10 million nearly doubling to $7.6 billion. The market performed better than London and New York, according to Knight Frank.
“Dubai’s modern nature, ease of doing business, and high quality of life have made it an attractive place for ultra-wealthy individuals to move, either fully or partly,” says Siraj Ahmed, partner in strategy and consulting at Cavendish Maxwell. “This has brought in substantial foreign investments, leading to more demand for luxury properties.”
Most Expensive Property Deals:
In 2022, Dubai saw its most expensive real estate deal: a Dh600 million villa on Frond N of Palm Jumeirah, reportedly bought by Indian billionaire Mukesh Ambani, according to Bloomberg.
The second most expensive deal was in 2023: a Dh500 million penthouse in Como Residences, also on Palm Jumeirah. Como Residences is a 75-story building with 81 homes, ranging from two-bedroom to seven-bedroom apartments, including a duplex penthouse. Each floor has at most two apartments, served by elevators leading to private lobbies.
Residents also have access to a rooftop infinity pool and an observation deck on the 75th floor, offering views of the Dubai skyline and the Arabian Gulf. The building is expected to be completed in 2028.
Another big sale was a Dh420 million penthouse at Marsa Al Arab in 2023. An apartment at Bulgari Whitehouse Dubai on Jumeirah Bay Island sold for Dh410 million last year. Many expensive properties have been sold at The Palm Jumeirah, showing high demand for homes on this man-made island in Dubai.
“Dubai offers great value for money,” says Chris Whitehead, managing partner at Dubai Sotheby’s International Realty. “Compared to places like Hong Kong, where prices reach $4,000 per square foot, Dubai’s prime real estate costs about $850 per square foot. It’s a great investment while offering a high quality of life.”
The UAE is also known for being one of the safest countries in the world. Its stable economy, efficient government, and favorable tax system make it a great place for rich individuals and families looking for a secure and successful lifestyle.
The UAE’s economy continues to grow, boosted by its non-oil sector. The country’s economy is expected to grow by 4% this year, after expanding by 3.6% last year. It’s forecast to grow by 5.1% next year, according to the International Monetary Fund.
All in the Palm:
In the third quarter, Dubai recorded combined residential and commercial sales worth Dh138.8 billion, according to a report from Engel and Volkers Middle East.
Residential sales grew by 40.8% year-on-year, totaling Dh115.6 billion. The commercial market added Dh23.2 billion in sales, a 28% increase compared to the same time last year.
Palm Jumeirah recorded 110 sales over Dh10 million, including three sales over Dh200 million in the quarter. Omniyat, a Dubai-based developer, sold a five-bedroom penthouse for Dh275 million at its One at Palm Jumeirah project in September.
Other major sales include the Sky Palace at Ava for Dh220 million and another property in the same development for Dh112.5 million. The company also sold a penthouse at The Lana Residences at Business Bay for Dh139 million this year.
These prime properties command high prices because they offer personalization and world-class services and amenities, according to Mahdi Amjad, founder of Omniyat.
Amenities at One at Palm Jumeirah and Ava include an outdoor pool, private cinema, private beach, jetty, valet and concierge services, and wellness facilities like a sauna and spa.
The Lana Residences, managed by Dorchester Collection, also includes an outdoor pool, gym with yoga studios, a dining room, conference facilities, and a private lounge. Each property has services from the luxury hotel operator.
In September, Omniyat launched The Alba by Dorchester Collection on Palm Jumeirah, valued at Dh7 billion. Some units in the project, designed by Zaha Hadid Architects, are expected to cost over Dh100 million. The project is set to be completed in 2028.
According to Mr. Whitehead, demand for Dh100 million-plus homes is very strong, as long as the properties are ready for use. “There’s a big wealth shift to Dubai right now. This is turning Dubai from a holiday home destination to a place where people want to live full-time.”
HNWIs (high-net-worth individuals) want homes with more space, better amenities, and higher-quality finishes. Most of these buyers are international, especially from European countries like the UK.
However, the supply of Dh100 million-plus homes is very low, while demand continues to grow as more rich people move to the UAE. “There aren’t many properties available, so a typical property is usually oversubscribed two or three times,” he says.
Waterfront properties at Jumeirah Bay Island, Palm Jumeirah, and homes in Emirates Hills and Dubai Hills are highly sought after, according to Dubai Sotheby’s International Realty.
It also takes longer to sell properties worth Dh100 million or more because buyers spend a lot of time going over the details and bringing in their teams and engineers, given the value of the property, Mr. Whitehead adds.
Driven Properties, another real estate agency, has helped sell more than 20 homes priced between Dh100 million and Dh240 million in the last two years, mostly to customers from Western Europe and CIS (Commonwealth of Independent States) countries.
“When it comes to buying luxury homes in Dubai, most buyers are looking for places to live, not just to invest,” says Abdullah Alajaji, CEO of Driven Properties.
According to Mr. Horani, people are drawn to Dubai because it feels safe, has no income tax, and has good roads and transportation. “Most customers are buying properties as a second home or even their first home, as they want to move to Dubai,” he adds.
Outlook for Expensive Property:
Demand for luxury properties is expected to keep growing, “but we’ll have to wait and see. So far, it’s been great, and many people are excited about Dubai,” says Mr. Horani. “Every developer is planning to build at least three to five penthouses, starting at Dh60 million and going up to Dh300 million or Dh400 million, with higher demand.”
Overall, experts are optimistic about continued demand for luxury properties. “Because there’s limited land along Dubai’s coastline, waterfront properties are expected to stay in high demand and achieve higher sale prices,” says Mr. Ahmed.
The outlook for the luxury property market remains very positive, says Mr. Alajaji. “We’ve never seen such a surge in interest as we have now, especially compared to pre-Covid times. The market has changed, and more people are looking to move to Dubai.”
